ANY LAB TEST NOW Franchisees Free to Leave, Compete
June 30, 2011
Lab Test Franchisees Open New Business; Franchisor Concedes Non-Compete Can’t be Enforced, says Franchise Lawyer W. Michael Garner
Two former Miami franchisees of “Any Lab Test Now” have successfully challenged the post-termination covenants not to compete in their franchise agreements, and have left the Any Lab Test system to open Unilab Express, according to Jason Baumann, President of Unilab
Miami, FL (PRWEB) June 29, 2011
Two former franchisees of “Any Lab Test Now” have successfully challenged the post-termination covenants not to compete in their franchise agreements, and have left the Any Lab Test system, according to the franchisees, Jason Baumann and Orlando Fernandez.
Baumann and Fernandez, formerly franchisees of Any Test Franchising of Atlanta, Georgia, a franchisor of walk-in laboratory services, have now opened business under their own flag known as “Unilab Express.” Baumann commented, “We hope to better serve the Miami public with a broader range of services, the availability of a physician, and better compliance with Florida’s strict patient privacy rules.”
Last week, Baumann and Fernandez wrote to the franchisor, announcing that they were leaving the system and pointing out that the franchise agreement’s covenant not to compete, which would otherwise have put them out of business, was not enforceable under Georgia law.
Joe Neely, President of Any Test Franchising, Inc., wrote back to both of the franchisees agreeing with their letters and accepting the terminations.
ALSO READ: ANY LAB TEST NOW Franchise Complaints
“The non-competes are fatally flawed under Georgia law,” said W. Michael Garner, attorney for the franchisees. “The Supreme Court of Georgia has held that provisions containing exactly the same language were unenforceable. The franchisor was smart to do this and avoid a legal fight that would have resulted in a legal precedent.” Baumann and Fernandez had raised their allegations that the non-compete was invalid in a lawsuit in Miami-Dade Circuit Court, Baumann et al v. Any Test Franchising, Inc. case no. 11-18661 CA 15.
Baumann and Fernandez, together with several other franchisees, are also suing the founder and owner of Any Test Franchising, David Lageschulte, of Fort Myers, for alleged fraud and misrepresentation made in connection with the sale to them of their Any Lab Test franchises. “We are pleased to have been able to sever our relationship with this franchisor.” Fernandez said. The case, Baumann et al. v. Lageschulte, No. 11-19072 CA 05, is pending in the Circuit Court of Miami-Dade County.
Walk-in laboratory facilities are becoming highly popular because of their convenience and low cost. A drug test, for example, can be obtained at Unilab Express for $39.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
PLAY N TRADE Video Game Franchise Ends in Bankruptcy
June 27, 2011
(Unhappy Franchisee: Uncensored Franchise Information) Franchise ownership was not new to Jason Manning when he opened his Play N Trade video game store in Butte, MT in August, 2007. He and his mother already owned and operated a successful Express Personnel franchise.
And Manning had done his homework. He had formulated a full business plan & secured the necessary financing before opening his Play N Trade franchise.
When interviewed for a local Business Profile article in February, 2008, Jason Manning was gung ho on his business.
“I think franchises are great,” he was quoted as saying.
Unfortunately, Jason Manning’s love affair with the Play N Trade franchise was short-lived.
Play N Trade Franchise Game Goes Bad
Jason Manning recently gave this account of the meteoric rise and fall of his franchise business so others could gain the benefit of his experience.
He wrote:
“I am glad I closed the store! I was a long 4 years. Aug 2007 – Aug 2008 The first year was great! Sales were better than expected. I bought into 3 more stores in my state.
“Year 2 saw a downturn in the economy…I also saw 2 more CEO’s and numerous changes in corporate staff. Sales were slipping quickly.
“Year 3.. the challenges were unexpected and HUGE. Suppliers (we were and never will be direct with publishers) couldn’t get product on time, didn’t have the needed products in stock after day 1-4 release. Sometimes we would wait 2-3 weeks for replaenishment. That meant Hundreds to thousands of dollars lost to competition and a loss of credibility.
“Year 4 was dismal. sales = 1/2 that of 2007/2008. no choice but to close. Asked PNT Corp for help but an unwillingness to help was the answer and I was forced to close bankrupt.
“Corporate support was lacking at best…some of their answers included “get it at Target, call your competition and see what they have left”. Amazon became my 3rd largest supplier of video games.
“Unfortunately, I do not believe that the corporate team has the skills to do the job that they want to…industry contacts, buying power, marketing, social networking…all of these things combined are setting themselves up for disaster not success.
“For the most part, The franchisees themselves put their lives into the franchise and were duped into a system that has major and very evident flaws.
“Opening a entertainment based franchise in this type of market will surely go down in flames.
Will the Play N Trade chain survive?
In 2008, Play N Trade had more than 100 stores open, more than 400 franchises sold, and “expected” to have 1000 locations by the end of 2011.
According to Entrepreneur.com, Play N Trade peaked at 241 U.S. franchises in 2009, then fell to 174 franchise locations in 2010.
More than 70 locations went dark shortly after Jason Manning closed his Montana Play N Trade stores.
“I am glad to be disenfranchised with Play N Trade.” wrote Manning on UnhappyFranchisee.com. “I expect that PNT will see more closures in the future with less store openings. Expect less than 150 stores open by year’s end.”
WHAT DO YOU THINK? ARE YOU FAMILIAR WITH THE PLAY N TRADE FRANCHISE? SHARE A COMMENT BELOW.
HOME HELPERS / DIRECT LINK Franchise Complaints
June 26, 2011
(UnhappyFranchisee.com) Home Helpers franchise complaints: Are you familiar with Home Helpers senior care franchise? Please share your opinion below! Thank you.
According to its franchise listing at Entrepreneur.com, “Home Helpers provides care and companionship services for: seniors, new moms, working parents, those recuperating from illness or injury and those needing continuing care for lifelong challenges. These services include assistance with meals, light housekeeping, transportation, errand services and much more… Home Helpers is affiliated with Direct Link, an in-home emergency monitoring system.”
Senior care is one of the fastest growing segments in the franchise industry. Yet while many senior care franchises have shown significant growth in recent years, one company has seen many of its franchises cease operations: Home Helpers.
In fact, since 2008, more than 200 Home Helpers franchises may have ceased operation. This chart shows the number of U.S. Home Helpers franchises in operation, by year:
| YEAR | Home Helpers U.S. Franchises |
| 2011 | 500+* |
| 2010 | 658 |
| 2009 | 678 |
| 2008 | 745 |
| 2007 | 699 |
* Home Helpers stopped providing Entrepreneur with franchise numbers in 2011. A recent press release simply states there are “more than 500” Home Helpers locations currently.
Why did so many Home Helpers franchises fail?
It’s hard to find the exact cause. A recent franchise prospect asked their sales representative about recent closures and was told, shockingly, that “the bottom 20% always fall off.”
There are numerous complaints on Rip-off Report website, though most are dated.
Back in 2008, Anonymous wrote on RipOff Report:
“Home Helpers is a big scam franchise and its parent company Strategic Franchising. Anybody who wants to buy a franchise should stay away from buying a Home Helpers franchise or any of their franchises for that matter. They are a complete waste of time and money and they are only interested to take your money and squeeze you dry. They say that they are low cost, but they charge you for all kinds of fees. There is no national advertising but you get charged through the nose for the non-existent national branding.
“Their marketing products are overpriced and any and all advertising you do as a franchisee is all out of pocket. They send you to all sorts of companies in which they have a ‘partnership’, but they do not guarantee success and the ’discount’ you get is negligible. You do not get any support, unless you count calling other franchisees and asking their permission to use their own formulated flyers.
“The ‘operations’ department are composed of non-franchisees and people with NO EXPERIENCE running a business or even in Home Care. They are hardly ever there and have no idea about any questions that you might have 99.9% of the time. You are on your own…which completely defeats the purpose of buying a franchise in the first place.Your fellow franchisees are your biggest competition even if you have a set “territory”. They will backstab you and ruin your business any way they can because they are all hungry and need any and all clients they can get. They are not above personal attacks either.
“They are a high pressure sales franchise and call you relentlessly during the sales period even at 10PM. Even if you ask them to remove your name, they call you even more. After you buy a franchise, you can never get a hold of anybody. LITERALLY. They talk down on you on the phone literally and talk to you like you are some kind of idiot. Not surprising as the VP for Operations, Emma Dickison looks down on everybody , never provides any answers and talks condescendingly to anybody and everybody who raises a concern.
“They guarantee money in 90 days. Obviously the guarantee does not work but they do not do anything about it, they just tell you that you didnt follow their “success formula” even if you did to the letter. It is just more bogus advertising to draw people into their web of half truths.
“They say that they will happily buy your franchise back if you don’t think the business is for you. They say that it is a ‘NO RISK’ franchise. They don’t tell you that you have to pay all the fees for the next six months while they try to sell your franchise for you for current market value and pay you for how much you originally paid for your franchise, MINUS $10,000 transfer fee to the new owners.
“They are relentless and money grubbing. They are number 1 in entrepreneur magazine for 2008,2007 and 2006 because of all the lies and half truths they push down your throat during the sales period. All they are is number one in sales. Nobody keeps track of how many there really are. Home Helpers Franchising is like getting on the Highway to Financial Bankrupcy.
“They say that their business model is designed for financial independence and you, as the franchisor, not to be operating the day to day. The truth of the matter is that their top franchisee do not even operate in his own territory and operates out of a run down building in a very bad area of his town. Another ‘successful’ franchisee just recently moved out of his own home office to rent an outside office and was finally able to afford an assisstant after 6 years of operation. Do the math, it clearly shows hollow promises and misleading advertising. A lot of the newer ones are not even operational after 18 months and eventually sell or surrender.
“They do not show franchisee income unlike Goddard Schools franchising. Probably because their franchisees do not make as much as they would like to portray.
“They have a 5 day training class where they basically encourage franchise owners to spin stories and basically LIE just to ‘relate’ to the people they are marketing to. A whole afternoon of workshop is dedicated to this story-telling event, anywhere from having a fictional father suffering from cancer to a fictional child with down’s syndrome.
“Bottomline, you are paying Home Helpers franchising $45,000 of your hard earned cash for a few books, a day of bashing its ‘competitors’ and how to bad mouth them, a 5 day “training class” where all they do is present vendors and get you to spend more money and little else. Nothing that you can’t learn at your local SCORE, nothing you can’t learn from any marketing textbook and obviously, an expensive way to buy yourself some disappointment, harrassment and headaches for months to come.
“This is a totally worthless franchise. Some are successful while a whole lot are not. The few that are just happen to be lucky, more power to them…but they are still a far cry financially from what they tell you during the selling period. They are more than happy to take your money, but it will be till kingdom come if you need your money back. They will find all sorts of fees to charge you just to hang on to your money. Time and time again.”
What do you think?
Anonymous definitely has an axe to grind, and his/her allegations are a bit dated but… there also must be some explanation for the rash of franchise failures other than “the franchisees didn’t follow the system,” or “the company wasn’t selective enough in accepting franchisees.”
ARE YOU FAMILIAR WITH THE HOME HELPERS / DIRECT LINK FRANCHISE? IS HOME HELPERS A GREAT OPPORTUNITY OR A FRANCHISE SCAM? SHARE A COMMENT – POSITIVE OR NEGATIVE – BELOW.
HAPPY HOUR MAGAZINE Franchise Complaints
June 26, 2011
(UnhappyFranchisee.com) Are you familiar with Happy Hour Magazine and the Happy Hour Magazine franchise? If so, please share a comment or insight below.
UnhappyFranchisee.com has been meaning to put together a Top 10 Franchise Opportunity Warning Signs. So, thanks go out to Happy Hour Magazine for inadvertently inspiring our first 2 potential Warning Signs That There Might Be Problems With Your Franchise Opportunity:
#10: The company has a franchise complaint on RipOffReport.com before it has its first franchise.
#9: In addition to its franchise opportunity, the company website and domain name are also for sale.
Is Happy Hour Magazine an Illegal Franchise?
Happy Hour Magazine is a free San Diego bar & restaurant scene publication founded by a young entrepreneur named Brad Nemire. According to his LinkedIn profile:
Brad Nemire is the Founder/Publisher of Happy Hour Magazine. What started as a unique idea has quickly become one of San Diego’s most desired print publications. Happy Hour Magazine Orange County just launched May 1, 2010.
Happy Hour Magazine San Francisco is launching 1.11.11!
Brad has plans of starting a Happy Hour Magazine in every major city in America, with goals of making it the go-to guide for anyone wanting to enjoy a happy hour.
[Graphic, above: franchise solicitation at HappyHourMagazine.com]
If you Google “Happy Hour Magazine franchise,” you’ll find links to both the company’s franchise solicitation as well as anonymous allegations on several websites (RipoffReport.com, ScamInformer.com) that Happy Hour Magazine is an illegal franchise opportunity. Here’s an excerpt of one dated May 17, 2011:
…The opportunity offered by Happy Hour Magazine is disguised as a franchise. A prospect originally from San Francisco had approached Happy Hour Magazine for the opportunity to open up for San Francisco. The prospect was still living in San Diego. After six months of purchasing the license the prospect was supposedly trained and ready before the launch to start out in January of 2011. After much confusion of business practices between the Publisher within a few months the prospect looked into further investigation of the agreement.
The prospect informally brought to Happy Hour Magazine’s awareness of illegal franchising. NO further action was taken by Happy Hour Magazine after offering a month to resolve the issue. The prospect searched out for a franchise expert and franchise lawyer. A letter of demand was given to the sole proprietor of Happy Hour Magazine. Which was another month to refund…. Sketchy deal and bad representation of the company.
In order to legally sell franchises in the state of California, Happy Hour Magazine would need to be in full compliance with FTC regulations (which would include providing prospects with a Franchise Disclosure Document, or FDD) as well as being registered with the CA Department of Corporations. It’s not clear whether Happy Hour Magazine complied with either state or federal requirements.
Happy Hour Magazine’s Tale of Two Websites
Oddly, there appears to be two Happy Hour Magazine websites, one that contains the franchise solicitation and one that does not.
If you Google “Happy Hour Magazine,” the first four search results take you to HappyHourMagazine.com. HappyHourMagazine.com promotes both the San Diego bar scene publication and the opportunity to start and run a franchised Happy Hour Magazine in other major cities. But there’s also a curious pop-up message that reads:
This website and the domain name “HappyHourMagazine.com” is for sale
Please contact happyhourmagazinesd@gmail.com with interest or inquiries
Farther down in the search results is a second, more convoluted URL, HappyHourMagOnline.com which seems to be more current and contains no mention of the franchise opportunity. The HappyHourMagazine.com domain appears to be registered to web company RaeSea Internet Marketing, and HappyHourMagOnline.com appears to be registered to Nemire.
[Graphic, left: Popup screen at HappyHourMagazine.com]
It’s not clear whether there are multiple disputes here, but it certainly seems to be a messy situation and a very poor start to a new franchise launch.
UnhappyFranchisee.com invites clarification from all parties. We also stress to our readers that, as with all franchise purchases: Buyer Beware.
If you’re familiar with the Happy Hour Magazine franchise or franchise dispute, please share a comment below.
POSIGRIP Dealer Scam Complaints
June 25, 2011
(Unhappy Franchisee) Are you familiar with the PosiGrip Business Opportunity? If so, share a comment below.
PosiGrip: A highly profitable business opportunity?
According to the PosiGrip website: “PosiGrip® offers a highly profitable turnkey, home based business, with virtually no competition. We include national advertising, a complete marketing program and no franchise or royalty fees* (*U.S. Market Only). Also, due to the new federal mandate, as a PosiGrip® Operator, you can offer your customers a federal tax credit just for using your cost effective services, and they will receive a two-year guarantee. It’s easy to say yes to PosiGrip®.”
PosiGrip: A total scam & Ripoff?
For the past several years, commenters on Ripoff Report have been complaining that PosiGrip is a scam. Here’s the latest from Thomas:
Posigrip is indeed a total ripoff! Nothing else!
AUTHOR: Thomas – Box Springs (United States of America)
SUBMITTED: Wednesday, June 08, 2011
POSTED: Wednesday, June 08, 2011
I bought a dealership about 1 year ago! First of all it’s not a Franchise!!!! It’s just a dealership you purchase, you don’t even get a Territory!! The product works fine and is easy to apply. The problem is the company itself!
It’s just a “whole in the wall” in Daytona FL, 2 rooms and a small warehouse. The training you get takes 30Minutes! I should have canceled my check and run the moment I saw it…well I didn’t…my mistake!
Now to the facts: it’s extremely difficult to sell the stuff!
There is ABSOLUTELY NO support from Posigrip!
The advertisement they promise never happens! They don’t attend any trade shows as they promise you! I never got any lead from them, there are NO corporate accounts as they promise. In the whole 12 month the only times they did contact me was for money. They offer a free display for expo, which you’ll get…the display is a piece of sh… it cost you more shipping than yopur own one would cost you.
They don’t even send you an email about new products, what’s going on in the market or whatever!
The post cards, introductions, or whatever they offer you….just forget about it – to much work, to much cost – not working at all!!
There are other companies in the market with the same product. If you think that business is for you, talk to them, but stay away from posigrip! It’s a very big ripoff!
Any questions or complaints or ideas or if you think I’m wrong or if you have any helping ideas!!
ARE YOU FAMILIAR WITH THE POSIGRIP OPERATOR OPPORTUNITY? IS IT A PROFITABLE BUSINESS… OR A SCAM? SHARE A COMMENT BELOW.
COLD STONE CREAMERY: Another Franchise to Close
June 25, 2011
(UnhappyFranchisee.com) The Cold Stone Creamery franchise in Los Gatos, CA will stay open until Labor Day, then close forever.
According to The Patch, Cold Stone Creamery franchise owner Charles Hamm, of San Jose, said sales were declining and the business environment has “made it impossible to continue operation.”
The store has been in Los Gatos since 2006. Hamm bought it in March of 2007 from a previous owner who also had been losing money. At the time, there were two Cold Stone Creamery stores in Los Gatos. According to Hamm: “They had mediocre sales and I thought if one closed, those customers would come over. In the summertime it’s not too bad, but I just can’t afford the winters.”
[Read more articles on Cold Stone Creamery]
Hamm owns another Cold Stone Creamery in Rivermark Plaza, in Santa Clara. Lamented Franchisee Hamm:”We’re hanging in there … We’ll continue operation there, but it’s a tough time, it’s been tough since 2008.”
Commenting on The Patch article, Cold Stone Creamery ex-franchisee David Klein wasn’t so quick to let the franchisor and parent company, Kahala, off the hook for the franchise failure. He stated::
I understand Mr. Hamm’s struggle and I feel very badly for him, but he is wasting his time and money trying to keep the second store open. It will never make it. I owned three stores. Two of them were among the top stores in the nation and the third operated at well above the average unit volume. Still we could not earn a profit.
I think overwhelmingly, most Cold Stone franchise owners are not profitable due to the actions of Kahala and Cold Stone Creamery. It may even be that no stores are profitable because it was discovered that Cold Stone accepts kickbacks from the distributors that it forces the franchise owners to use. This was reported on CNBC but also in the Wall Street Journal. That causes Cold Stone franchises to become unprofitable. In many cases, this results in the loss of $500,000 or more in savings and other assets and leads to bankruptcy and ultimately the loss of the owner’s home. It’s corporate greed at it worse.
As Cold Stone continues to engage in kickbacks and until the federal government steps in says “no more kickbacks”, this will continue to happen.
Are you familiar with Cold Stone Creamery and Kahala? What do you think? Share a comment below.
LET’S DISH Fairfax, VA Restaurant Equipment Auction
June 25, 2011
Another meal preparation franchise bites the dust.
Let’s Dish food preparation and assembly kitchen is closings its Fairfax, Virginia, and will make a complete liquidation of all late model, like new equipment, furniture, fixtures and smallwares via an online auction by Rasmuss Auctioneers.
Location:
11215 N. Lee Highway, Suite N, Fairfax Centre (Chili’s Restaurant parking lot) 11215 Lee Highway Suites N & P (Go down around the back of the shopping center), Fairfax, VA 22030
Online Bidding Only
Starts Closing At: Tuesday, July 19, 2011 at 11:07 PM EDT
Inspection
Begins: Monday, July 18, 2011 at 10:00 AM EDT
Ends: Monday, July 18, 2011 at 4:00 PM EDT
Click here for the Let’s Dish Auction Details.
A few of the auction items include:
10793.
SANDWICH PREP STATION BEVERAGEAIR SP7218C 72W X 37.5D X 55H, 3 DOOR WITH 2 DOOR MEGA TOP, OVERHEAD SNEEZE GUARD, SS REMOVABLE MEGA TOPS, 17IN WHITE POLY CUTTING BOARD, 3 DOOR LOWER REFRIGERATOR ON CASTERS RM FRONT KITCHEN
10760.
REFRIGERATOR DELFIELD MFPT2-S REACH IN 2 DOOR SS WITH 2 REAR GLASS DOORS, 56W X 36D X 76H, ON CASTERS RM FRONT KITCHEN
10860.
WALK IN REFRIGERATOR FREEZER ARCTIC INDUSTRIES 4F12X7.10 EXTERIOR DIMENSIONS 186W X 12FT DEEP. INTERIOR HEIGHT OF 116IN. PEBBLED GALVANIZED FINISH RAISED FLOOR, RAMPED DRILLED FOR SPRINKLER, TOP MOUNTED COMPRESSOR, BUYER TO DEINSTALL AND REMOVE RM REAR KITCHEN
10758.
MICROWAVE AMANA RCS10MPA 22W X 18D X 14H RM FRONT KITCHEN
10883.
PREP TABLE EAGLE 60W X 30D X 34H SS ROLLED FRONT AND REAR EDGE GALVANIZED LOWER SHELF, UNEVEN RM REAR KITCHEN
ARE YOU FAMILIAR WITH LET’S DISH OR OTHER MEAL ASSEMBLY FRANCHISES? SHARE A COMMENT BELOW.
PLAY N TRADE Franchise Stores Closed & Closings
June 25, 2011
(UnhappyFranchisee.com) The Play N Trade franchise opportunity may seem like a safe, risk-free investment because of the well-known brand name, the great product and positive media hype (which includes rankings and awards from publications that survive on advertising from franchise companies like Play N Trade).
Some Play N Trade franchise owners may have a different opinion on how risk-free buying a Play N Trade video game store franchise really is.
Play N Trade, San Mateo, CA
“Orlando and Misty Megia opened Play N Trade on B Street in downtown San Mateo four years ago but they are closing its doors June 26. Spending money on video games is something people are doing less of in the poor economy, Misty Megia said.” The Daily Journal, June 20, 2011.
Play N Trade, Squamish, BC, Canada
“Squamish Play N Trade has joined ranks with the legion of Play N Trade stores that have closed across Canada and the United States and is embroiled in a lawsuit with the California-based company. The Squamish video gaming store closed on Labour Day weekend…” Squamish Chief, December 3, 2010.
Play N Trade, Butte, Montana
“Play N Trade closing doors. Play N Trade, a retail video game store in Butte, will close its doors Saturday. Owner Jason Manning said the business had been operating in Butte for almost four years, but heightened competition and a down economy forced the closure. It will result in four full-time people being put out of work.” MT Standard, Wednesday, May 4, 2011
Play N Trade, New York, NY
“Play N Trade – CLOSED. 137 E 13th St, New York, NY 10079, Neighborhood: East Village” Source: YELP
Play N Trade, Alexandria, VA
“My local Play N Trade in Alexandria, VA was apparently shut down yesterday. I had only gone to this place a few times, because frankly the people there were unfriendly, appeared to make fun of you behind your back…” Jamisonia, Feb 01, 2011
Play N Trade, Florida
“My local Play N Trade is going out of business. Sadly it’s the last one in the area… I frequented this store and the owner was a great guy, as is his mom. They just weren’t making money and had no choice. The sad day of close is on the 15th of September.” prot8to on Sep.02, 2010. Graphic by prot8to.
Other Play N Trade Reported Closures:
Palmdale Alabama 93551
Avondale Arizona 85323
Albuquerque, New Mexico 87109
Smithtown, New York (32 East Main St. 11787)
Elk Grove, CA (2513 Riparian Dr. 95624)
Tustin, CA
Colonie Center, Colonie, NY
Sarasota, FL (4013 Clark Rd 34233)
Miami Lakes, FL
REPORT A PLAY N TRADE FRANCHISE CLOSING OR ADD A COMMENT BELOW.
Email Play N Trade closing photos to unhappyfranchisee[at]gmail.com
QUIZNOS SUB Franchise Closing, Closings, Closed
June 25, 2011
(UnhappyFranchisee.com) Know of any Quiznos Sub franchise locations that have closed or are closing soon? Share a comment below, or email a picture to unhappyfranchisee[at]gmail.com.
The Quiznos Sub franchise opportunity may seem like a safe, risk-free investment because of the well-known brand name, the great product and positive media hype (which includes rankings and awards from publications that survive on advertising from franchise companies like Quiznos).
Some Quiznos Sub franchise owners may have a different opinion on how risk-free buying a Quiznos Sub franchise really is. A Forbes article “Where You Might Not Shop In 2011” reported:
Quizno’s
Stores closed: Aproximately 1,000 (analyst estimate; company won’t confirm)
Percentage of total: 22.7%
Struggling as a higher-priced alternative to Subway, the sandwich chain began putting mini-stores into gas stations to boost market share. Upscale fast sandwiches are a tough position in a down economy.
Here is a growing list of Quiznos Sub franchise investments that didn’t end so well:
Quiznos Sub, Hampstead, MD
The contents of Quiznos Sub, 2319-A Hanover Pike, Hampstead, MD 21074 were auctioned off Tuesday Febuary 1st, 2011 by Rasmus Auctioneers.
Quiznos Sub, Eldersburg, MD
According to a December, 2010 post on the Eldersburg Patch: “A manager of another nearby business… put it more bluntly saying, ‘he just wasn’t making any money.’ Assets of the sandwich shop were sold in an online auction Nov. 23 by Rasmus Auctioneers.”
Quiznos Sub, Santee, CA
From the Santee Patch, June 21, 2011 “Quiznos Subs shop left a sign posted at the entrance which indicated the downturn in the economy was the main factor in their closing.”
“Dear Valued Guests,
Due to the recent economy and recession, we have regretfully closed our business. We appreciated your business over the years.
Sincerely, Jim and Diane”
Photo credit: Scott Sinclair
Quiznos Sub, Elgin, IL
“Within the last nine months, three downtown restaurants have closed and remain vacant: Quiznos, Mad Maggie’s and RoadHouse/Main Event” June 22, 2011, The Courier News.
Quiznos Sub, Hyattsville, MD
“Update June 8, 2011: After reading the scrawled ‘Closed’ note posted on the door of the Quiznos store at the Shoppes at Metro Station, one might think the manager had simply stepped out for a lunch break. But after about a month of zero activity at the sandwich store, the truth is firm: this sub shop’s ship has sailed.”
In a comment on the Hyattsville Patch story, The Kid wrote:
Quiznos corporate makes its money selling food and supplies to its restaurants at inflated prices… This chain had nearly 6,000 restaurants in 2006 and a tad more than 2,000 now. It’s a loser to everyone except Dick Schaden and the Wall Street fatcats who own it.
Quiznos Sub, Bennington, Vermont
“Five months after it reopened to much fanfare, the Quiznos in Bennington Square is once again closed. Tuesday’s closing came as a shock to the sandwich shop’s employees, who learned Friday they would be losing their jobs…” Quiznos Closing Shocks Workers, Tuesday January 11, 2011.
Quiznos Sub, Virginia
”Quiznos is closing down!! by Hannah_Banana222 on Thu Jan 13, 2011 2:30 pm My brother works (well, worked) there, and they told him it was closing on the very last day it was open. No notice whatsoever. Not nice.”
Quiznos Sub, El Cerrito, CA
“Quiznos Sub – CLOSED 10810 San Pablo Ave, El Cerrito, CA 94530, (510) 527-7827” Source: Yelp
Quiznos Sub, Ocean City, MD
See photo. Closed Quiznos shot while on vacation.
Quiznos Sub, Boston, MA
“The Quiznos sandwich shop at 263 Huntington Ave., between Symphony Hall and Gainsborough Street closed Nov. 4, eliminating an eating choice near the Northeastern campus.” The Huntington News, November 11, 2010.
Quiznos Sub, Bloomington, IL
“A Lexington business owner who recently closed his Wings Etc. restaurant and bar has also shuttered his two Twin City Quiznos locations. The Quiznos franchises, at 2601 Oakland Ave. in Bloomington and 1700 E. College Ave. in Normal, had been the only two in the Twin Cities, according to the sandwich-shop chain’s website. A sign on the Oakland Avenue store’s door last week read, ‘Sorry, we are closed for business.’ The Quiznos franchise owner was Greg Wilson of Lexington, doing business as Gregors Enterprise Inc….” Pantagraph.com, January 6, 2011.
Quiznos Sub, Williston, North Dakota
“Quiznos closes doors, no reason given. Quiznos of Williston closed its doors on Saturday, and it’s unclear if the sandwich shop will reopen. One of the owners said he couldn’t comment on whether the restaurant would open again due to corporate policy restrictions… Quiznos, which first opened in Williston several years ago, had closed before for a few months last year and re-opened July 30, 2010.” Williston Herald, April 20, 2011
Quiznos Sub, Garden City, Kansas
Quiznos’ time in Garden City has come to an end. The franchised sandwich shop closed its doors Friday after more than 13 years in business and will be converted into another sandwich shop, Subway… owner Clark Nelson chose not to renew the rights to his location…
Business over the years has had its “severe ups and downs” and the restaurant had been busier than normal as the closure approached, Nelson said.
“We’re tired of it. It’s been a long stretch,” Nelson said. “We’re ready to do something else.” GC Telegram, 1/1/2011.
REPORT A QUIZNOS SUB FRANCHISE CLOSING OR ADD A COMMENT BELOW.
Email Quiznos Sub closing photos to unhappyfranchisee[at]gmail.com
THE UPS STORE Franchise Complaints
June 23, 2011
YOU CAN’T MAKE ANY MONEY WITH A UPS STORE!! That is PURE TRUTH!! – Michael Riggins
Is The UPS Store franchise opportunity a scam? Do The UPS Store franchise owners lie and cheat in order to dump their franchise stores on unsuspecting buyers? What do you think? Share a comment below about The UPS Store franchise – good or bad.
According to commenter Michael Riggins:
“I hired the BEST CPA in the Land who investigated an existing supposedly successful UPS Store with sales of over $300,000.00. We gave careful Due Dilligence and learned there was money being pumped into the business from the owner’s personal bank account to keep the business afloat. There is NO Money to be made in owning a UPS Store. I Promise you!!
“Watch out for UPS Store Franchise Owners as they will try to hide in their Quick Books showing they are succesful. Don’t Trust it……… They will tell you there is money to be made in printing and other services and that is all a BIG, HUGE, FAT PIPE DREAM!!! I have been an Executive of Retail Businesses for over 25 years and this is ALARMING!!!! There are large companies out there in every city that do printing and other services. They have sales people that call on businesses too…. So, get rid of the PIPE DREAM…..
“UPS charges FAT Franchise Fees and other Fees, and Fees, and Fees, and Fees. YOU CAN’T MAKE ANY MONEY WITH A UPS STORE!! That is PURE TRUTH!! You will have some Store Owners tell you that you can make money but they are saying it so they can sell their business and not have any bad info out there on the street. So Remember that……”
What’s your experience?
HAVE YOU HAD DEALINGS WITH THE UPS STORE FRANCHISE OPPORTUNITY? IS IT A SCAM? ARE UPS STORE OWNERS DECEPTIVE IN SELLING THEIR BUSINESSES? SHARE A COMMENT BELOW.
